-LRB- CNN -RRB- Ferguson City Manager John Shaw resigned Tuesday in the wake of a scathing Justice Department report .

The report blames Ferguson , Missouri , police and courts for abusive behavior that disproportionately targets African-American residents .

`` Over the last several months I have done everything in my power to work with countless groups to bring about positive change and strengthen our community , '' Shaw wrote in his resignation letter .

He continued : `` During this time I have also worked closely with the Department of Justice to identify opportunities to improve , and then moved quickly to implement its recommendations for change .

`` And while I certainly respect the work that the DOJ recently performed in their investigation and report on the City of Ferguson , I must state clearly that my office has never instructed the police department to target African Americans , nor falsify charges to administer fines , nor heap abuses on the backs of the poor . Any inferences of that kind from the report are simply false . ''

Shaw 's resignation was announced the same day the City Council voted 7-0 on a mutual separation agreement with Shaw .

Residents elect City Council members , who in turn appoint the city manager . The city manager directs and supervises all city departments , including the Police Department .

Along with other officials , Shaw was heavily criticized by the Justice Department report , which found that authorities in Ferguson frequently saw residents as `` sources of revenue . ''

In fact , the city enjoyed so much success in issuing tickets and fines that Ferguson , population 21,000 , was ranked in the top eight of the 80 municipal courts in St. Louis County by having more than $ 1 million in revenue in 2010 , the report said .

In one March 2012 email , the captain of the patrol division reported to Shaw that court collections the previous month reached $ 235,000 -- the first month collections exceeded $ 200,000 .

The city manager reported the email to the City Council , congratulating police and court staff on their `` great work , '' the report said .

When Ferguson court revenues exceeded $ 2 million for the whole of 2012 , the city manager responded to the police chief in an internal email : `` Awesome ! Thanks ! '' according to the federal report .

The DOJ 's probe came after public outcry over the death of unarmed black teenager Michael Brown , who was shot by Ferguson police Officer Darren Wilson in August .

Wilson , who was not indicted on any charges , has resigned from the police department .

But when Ferguson resident Sue Schmidt defended Wilson at Tuesday 's City Council meeting , she heard vocal objections from those in the crowd .

`` I 'd like to say a lot of people in this room owe Darren Wilson an apology , '' Schmidt said , prompting laughter by some in the audience . `` The same justice report that you 're basing all your opinions on cleared him 100 % . ''

CNN 's Jennifer Feldman , Holly Yan , Sarah Aarthun and Michael Martinez contributed to this report .

@highlight

John Shaw : `` My office has never instructed the police department to target African Americans ''

@highlight

A Department of Justice report blames Ferguson police and courts for abusive behavior

@highlight

Ferguson resident : Many people owe former Officer Darren Wilson an apology